Monday, December 30, 2013

Indices closed mixed.....

Indices closed near high of the day.

S&P 500 @ 1841.07, low 1838.77, high 1842.47

RSI @ 69.08

CMF @ 0.076

Internals were :

Down volume led by 1.10 to 1 in NYSE & .93 to 1 in Nasdaq

Declining stocks led by 1.07 to 1 in NYSE & 1.09 to 1 in Nasdaq

Net new 52 wk highs were leading by 132 in NYSE & 120 in Nasdaq

VIX UP 8.83% @ 13.56

Oil @ $99.29

Gold @ $ 1203.80

AH Futures Mixed

AH Asian Markets UP

AH Oil UP

AH Gold Down

About market, TAPE was much weaker than headline numbers based on internals & VIX. VIX is very troubling as it may be pointing to upcoming weakness in indices. There is an eerie feeling about this market. Ralph Acompora is expecting a 10 to 15% decline in indices. I will not be surprised IF we take out the froth from this bull. Pullback should be taken as healthy. IF we pullback then it may be a long drawn out drip drip kind of pullback. It is recommended not to be over extended until we have seen @ least 5% pullback which is 92 points. We may be looking @ 1750 area.

BLOG does NOT give buy or sell.

Saleem

5 comments:

stocktrader_1996 said...

Hey Saleem,

Bought SODA @ 49.25. This quarter's earnings should look much better than last quarter based on retailer restocking and I think the stock has been depressed with year-end issues.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good luck with SODA....

Saleem

stocktrader_1996 said...

Hey Saleem,

Bought HPQ @ 27.93 to round out the portfolio. I like the continued cost cuts in declining businesses and I think Meg has a good vision for the future. As you know, I'm also expecting a corporate refresh cycle in 2014 which could provide upside to estimates. With high cash flows and a very low P/E and expectations, I think the downside is very limited.

Stocktrader

Stocks100 said...

Hi Stocktrader,

HPQ is @ the same price as it was in last week of July....

Good luck with HPQ & a good leader in Meg Whitman...

Saleem

stocktrader_1996 said...

Hey Saleem,

I was waiting to see if there was a midday post or not but you might just be waiting for close on this very slow day.

Sold FB @ 54.39. I bought this last week on a small pullback thinking it was going to charge to $60 by year's end and was very wrong. TWTR is making FB look "old" right now, and Alibaba should take fund flows in the near future. Overall, I think social sites are starting to have less stickiness again as many more new sites have gained popularity. It will be interesting to see how this turns out...

Sold AAPL @ 560.05. I am hearing rumors that preorders in China are below expectations, and given that was the nice catalyst to drive us above $550, I fear a pullback here. I know Q4 should be good and there might be runup, but I don't know how to react to a slower Q1. Even if the stock moves some, I should be able to find better % movers given AAPL is so large.

Added to CLDX @ 24.09. The chart is really shaping up nicely for a breakout back above the 50 DMA with MACD showing separation and a double bottom nearly confirmed. Their pipeline is diverse and many trials have been positive recently. They could attract suitors or be fine going it alone given their recent secondary.

Stocktrader